USDC

MaxSmart1981

After the USDC/Circle panic where i ended up selling and missing out on a huge pump, i wasn't about to miss this time. i took all the cash i had sitting on the sidelines from a few lucky pumps and bought in last night. so far i'm pretty happy with the decision.

coinfeeds-bot

tldr; The dominance of centralized stablecoins like USDT, USDC, and BUSD is causing concern in the crypto market, particularly as Tether gains market share amidst regulatory uncertainties. This creates a single point of failure for the entire crypto ecosystem, which is why a new cohort of builders are stepping up to tackle the problem with innovative stablecoin offerings. These include GHO, a multi-collateral stablecoin that allows users to leverage assets supplied to Aave as collateral to mint the $GHO stablecoin, crvUSD, which operates through an over-collateralized debt position and uses a new mechanism known as LLAMMA to gradually convert a user's collateral into crvUSD as the collateral's value decreases, and Lybra, a decentralized protocol aimed at stabilizing the cryptocurrency market through the use of Liquid Staking Derivatives. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*

xmister85

Might be as they have more liquidity in the sense of USDC... Alresy Binance had 785 million $ outflows.

OppenheimersGuilt

That's not the gotcha. If you wanted to take hype away, you could just point out it provides private banking and not retail banking services. Nevertheless, 10 years old already, also offers USD accounts and allows sending+receiving USDC on USD accounts. I _do_ think that's great.

TankSpecialist8857

Trying to save face for the upcoming Ripple loss and regulatory clarity for BTC/ETH/XRP/USDC 😎

ChainsofCastamere

One of the banks in the partnership with Swift is BNY Mellon, which holds custody of Circle's USDC reserves. I wonder if we're going to see USDC more closely integrated into TradFi son too.

Machete521

Hasn't outlived USDC ye- *oh*

CointestMod

#Tether Con-Arguments Below is a Tether con-argument written by Far-Scholar9028. > **Tether Cons** > > **Dodgy Reserves** > > Initially, Tether asserted that each USDT was backed by a dollar in its reserves. But the truth is more nuanced, Tether is supported by a variety of: > > * Other Investments (Including Digital Tokens): 8.36% > > * Secured Loans(None To Affiliated Entities): 6.77% > > * Corporate Bonds, Funds & Precious Metals: 5.25% > > * Cash & Cash Equivalents & Other Short-Term Deposits & Commercial Paper: 79.62% > > Of the 79% cash and cash equivalents, only 10.25% is held in cash. Also to be emphasized is the lack of an independent audit of the specific breakdown of Tether's reserves. > > **Regulatory Issues** > > The Paradise Papers dump in 2017 revealed that Bitfinex and Tether are both controlled by the same individuals. The Bitfinex trading platform's owners, who also manage the tether virtual currency, have participated in a cover-up to conceal the apparent loss of $850 million dollars, according to the investigation conducted by the New York state Attorney General. Later, Tether's attorney acknowledged that only 74% of the Tether is backed. Tether is forbidden from conducting business in New York under the terms of the settlement agreement. Despite paying a $18 million punishment, Bitfinex and Tether did not confess any wrongdoing. > > **Competitors** > > * USDC: Circle and Coinbase launched USDC in 2018, and it is tied 1:1 to the US dollar. Issuers are also required to back all tokens with fiat reserves and provide monthly proof of reserves in order to guarantee that USDC maintains a continual one-to-one backing. > > * BUSD: BUSD is a stablecoin backed by USD that is 1:1 secure, compliant, and supported by Binance. It was created by Paxos and has NYDFS approval. To preserve the stability and security of the stablecoin, Paxos hires an auditing company to examine its BUSD and US Dollar supply each month. ***** Would you like to learn more? Check out the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Tether) to find submissions for other topics.

CointestMod

#Tether Pro-Arguments Below is a Tether pro-argument written by CreepToeCurrentSea. > [USDT](https://tether.to/en/transparency/) is a stablecoin (stable-value cryptocurrency) issued by Tether, a Hong Kong-based company. The token is pegged to the USD by keeping reserves of commercial paper, fiduciary deposits, cash, reserve repo notes, and treasury bills equal to the number of USDT in circulation. Initially named as Realcoin, a second-layer cryptocurrency token built on top of Bitcoin's blockchain using the Omni platform, it was later renamed USTether and, finally, USDT. In addition to Bitcoin, USDT was later updated to work on the Ethereum, EOS, Tron, Algorand, and OMG blockchains. > > # PROs > > **USDT is well established** > > It has built a long history of resilience, reliability and trust because it has been around for a [while](https://www.wsj.com/articles/BL-MBB-23780) (around 8 years in the cryptocurrency market). This had helped to convince clients that the stablecoin is [legitimate](https://www.certik.com/projects/tether?utm_source=CMC&utm_campaign=AuditByCertiKLink). > > As of this year, USDT currently is in the top ten cryptocurrencies by [market cap](https://www.coingecko.com/en/coins/tether) with a 24-hour trading volume of around 45 billion dollars and a total number of addresses of up to 4.5 million. In its last known [audit](https://www.fairyproof.com/doc/111.pdf) in 2021 it has been considered to have *"No vulnerabilities with critical, high, medium or low-severity."* > > **Wide acceptance** > > Tether has multiple gateways for customers (retail, exchanges, and companies) because it is built on several leading [blockchains](https://tether.to/en/supported-protocols), including Algorand, Avalanche, Bitcoin Cash's Simple Ledger Protocol (SLP), Ethereum, EOS, Liquid Network, Omni, Polygon, Tezos, Tron, Solana, and Statemine. These transport protocols are made up of open source software that interfaces with blockchains to allow for the issuance and redemption of Tether tokens. > > Furthermore, it has been available on major exchanges such as Bitfinex, Binance, Coinbase, Kraken and [more](https://www.coingecko.com/en/coins/tether#markets), Offering a plethora of pairs for users to choose from or that of which is available in their region although as of lately some exchanges have been switching to Circle's USDC over growing concerns of legal issues related with Tether. > > **Buffer against volatility** > > One of the primary functions of stablecoins is to act as a [hedge](https://www.researchgate.net/publication/341245986_Are_stablecoins_truly_diversifiers_hedges_or_safe_havens_against_traditional_cryptocurrencies_as_their_name_suggests) when crypto markets are in a downturn. Because the aforementioned market is extremely volatile, traders and investors want some sort of buffer against this without having to directly trade their crypto for fiat as to also avoid larger fees as well. Supported by its large market capitalization, USDT should be less volatile and thus safer. > > **Announcement of a full audit** > > Tether's CTO Paolo Ardoino recently stated in an [interview](https://www.euromoney.com/article/2a8dpi4tnxahuu98a251c/fintech/cryptocurrencies-tether-is-open-to-providing-more-information) with Euromoney that the company is preparing for a full audit with an accounting firm called MHA Cayman (which also handles Tether's [quarterly assurance opinions/reports](https://assets.ctfassets.net/vyse88cgwfbl/1np5dpcwuHrWJ4AgUgI3Vn/e0dac722de3cea07766e05c52773748b/Tether_Assurance_Consolidated_Reserves_Report_2022-03-31__3_.pdf)). According to the CTO in the interview, MHA Cayman is one of the "*top 12*" accounting firms, and most top accounting firms deny requests for full audits due to the associated reputational risks. In the future, hopefully, this will provide more security and transparency to its users against the number of allegations and investigations it is currently facing. > > **Despite everything, USDT is still here** > > From the past legal troubles it has faced, the ones it's facing right now, the vast amount of criticisms from different facets off the internet and the several crypto winters it endured. USDT is still alive and kicking. Will it still be the top stablecoin in the next 5 years? Unlikely, but I am for certain it was a major part for the growth and expansion of crypto's fetal years. Moving forward it's up to them, the people behind Tether, if they will finally redeem themselves against all the allegations, criticisms, troubles, and not just do another settlement. > > ^(Sources:) > > [^(https://tether.to/en/faqs/)](https://tether.to/en/faqs/) > > [^(https://tether.to/en/supported-protocols)](https://tether.to/en/supported-protocols) > > [^(https://tether.to/en/transparency/)](https://tether.to/en/transparency/) > > [^(https://tether.to/en/transparency/#reports)](https://tether.to/en/transparency/#reports) > > [^(https://en.wikipedia.org/wiki/Tether\_(cryptocurrency))](https://en.wikipedia.org/wiki/Tether_(cryptocurrency)) > > [^(https://assets.ctfassets.net/vyse88cgwfbl/5UWgHMvz071t2Cq5yTw5vi/c9798ea8db99311bf90ebe0810938b01/TetherWhitePaper.pdf)](https://assets.ctfassets.net/vyse88cgwfbl/5UWgHMvz071t2Cq5yTw5vi/c9798ea8db99311bf90ebe0810938b01/TetherWhitePaper.pdf) > > [^(https://www.wsj.com/articles/BL-MBB-23780)](https://www.wsj.com/articles/BL-MBB-23780) > > [^(https://www.certik.com/projects/tether?utm\_source=CMC&utm\_campaign=AuditByCertiKLink)](https://www.certik.com/projects/tether?utm_source=CMC&utm_campaign=AuditByCertiKLink) > > [^(https://www.coingecko.com/en/coins/tether)](https://www.coingecko.com/en/coins/tether) > > [^(https://www.fairyproof.com/doc/111.pdf)](https://www.fairyproof.com/doc/111.pdf) > > [^(https://www.coingecko.com/en/coins/tether#markets)](https://www.coingecko.com/en/coins/tether#markets) > > [^(https://www.researchgate.net/publication/341245986\_Are\_stablecoins\_truly\_diversifiers\_hedges\_or\_safe\_havens\_against\_traditional\_cryptocurrencies\_as\_their\_name\_suggests)](https://www.researchgate.net/publication/341245986_Are_stablecoins_truly_diversifiers_hedges_or_safe_havens_against_traditional_cryptocurrencies_as_their_name_suggests) > > [^(https://www.researchgate.net/publication/339263534\_What\_is\_Stablecoin\_A\_Survey\_on\_Price\_Stabilization\_Mechanisms\_for\_Decentralized\_Payment\_Systems)](https://www.researchgate.net/publication/339263534_What_is_Stablecoin_A_Survey_on_Price_Stabilization_Mechanisms_for_Decentralized_Payment_Systems) > > [^(https://www.researchgate.net/publication/332458820\_Is\_Cryptocurrency\_a\_Hedge\_or\_a\_Safe\_Haven\_for\_International\_Indices\_A\_Comprehensive\_and\_Dynamic\_Perspective)](https://www.researchgate.net/publication/332458820_Is_Cryptocurrency_a_Hedge_or_a_Safe_Haven_for_International_Indices_A_Comprehensive_and_Dynamic_Perspective) > > [^(https://www.euromoney.com/article/2a8dpi4tnxahuu98a251c/fintech/cryptocurrencies-tether-is-open-to-providing-more-information)](https://www.euromoney.com/article/2a8dpi4tnxahuu98a251c/fintech/cryptocurrencies-tether-is-open-to-providing-more-information) > > [^(https://assets.ctfassets.net/vyse88cgwfbl/1np5dpcwuHrWJ4AgUgI3Vn/e0dac722de3cea07766e05c52773748b/Tether\_Assurance\_Consolidated\_Reserves\_Report\_2022-03-31\_\_3\_.pdf)](https://assets.ctfassets.net/vyse88cgwfbl/1np5dpcwuHrWJ4AgUgI3Vn/e0dac722de3cea07766e05c52773748b/Tether_Assurance_Consolidated_Reserves_Report_2022-03-31__3_.pdf) ***** Would you like to learn more? Check out the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Tether) to find submissions for other topics.

Intelligent_Page2732

We can say what we wanna, but nobody thought Tether would outlive USDC, UST and BUSD...

MinimalGravitas

Ether is the native asset of Ethereum (issued to stakers, used to pay for gas etc etc). Wrapped ether (wETH) is an ERC-20, minted by locking native ether and so tied to match native ether's price. It is useful because many smart contracts are designed to interact with ERC-20 tokens, and cannot perform the same functions with native ether. WETH lets you use ether in smart contracts exactly the same as you use DAI, USDC, etc etc.

sitwano

What happens to USDC that is on the polygon network? Would that also be a security?

Revolutionary_Owl670

I mean I heard the same with FTX, Luna, thedepegging of USDC, etc. Waves happened and then people bought.

MaximumStudent1839

Lol. DeFi would helluva more safer if it had stables backed by CBDCs instead of fiat stored in who-know-where banks. Tether and USDC past fiascos are good evidence.

sQtWLgK

and if BUSD is a security then USDC/T are securities too

coachhunter2

Wait until the Automated market maker launches on the XRP ledger. Then you can earn from providing liquidity. Also maybe convert some more of that USDC into XRP. If the Ripple case ends soon positively, you will make a healthy profit.

Fuglypump

When is USDC going to deploy onto Noble Network? That's what I really want to know.

coinfeeds-bot

tldr; Circle, the leading stablecoin issuer, has announced the deployment of its native token USD Coin (USDC) on the Arbitrum network, a prominent name in the Ethereum layer 2 scaling solutions landscape. The deployment is set to take place on June 8, marking a significant milestone for Circle and the stablecoin ecosystem. The integration of the Cross-Chain Transfer Protocol (CCTP) bridge will facilitate quick and efficient transitions between Ethereum and Arbitrum while enabling users to convert their assets and own a fully native version of USDC within minutes. This deployment assures users of a 1:1 margin ratio, backed by reserve assets held by Circle, ensuring the stability and security of USDC. The introduction of the native USDC token on Arbitrum not only signifies Circle’s commitment to enhancing liquidity and user experience but also positions the company as a formidable competitor in the stablecoin market. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*

Rogueofoz

USDT, BUSD, USDC, TUSD can blacklist the address and stop the hacker from ever cashing out of them

Satansmybro

I usually don’t keep more than just a couple hundred, if that, in USDC at a time. Just what I spend on my Coinbase debit card really 🤷‍♂️

Illicitterror

Staking, you have it labeled wrong. The USDC you can supply it to LP on defi and earn good yield

assimilated_Picard

Sent BTC to this: 35u9nXS8Myxw5ntBjXVyH6UQDentCia53d Sent USDC to this: 0x6d5bb15d8DE7D4cE264d299C09E47cd92F4C3249

StrangeInsight

U/cocaine_butthole is correct. USDC is only FDIC in a bank. On an exchange, it's a symbolic asset, that evaporates if the business goes belly up.

Any_Chipmunk_859

Prediction: XRP will overtake USDC for the #5 spot this month.

002_timmy

Your USD are insured on [Binance.US](https://Binance.US). The minute they are converted to anything crypto, including stable coins (BUSD, USDC, USDT, etc), they lose FDIC protection.

chchrnblklk

I'd say USK will still have that decentralized stablecoin narrative going for it, even with the arrival of native USDC. That, plus the "real yield" narrative makes Kujira an interesting prospect. Hopefully they can sort out the closed source issue.

Swoopscooter

The quote was about cloned USDC . Are y'all really going with 'pulsicans' ? Lol

breathe345

This is pretty cool and has the potential to be amazing, but also has some serious problems. The main problem is customer support. I used Lobstr successfully with MoneyGram USDC on and off ramps, but now I'm getting error 3556. I now see the message "Unfortunately, this wallet is not eligible for MoneyGram transactions at this time" I contacted a MoneyGram supervisor, and they suggested I try a different location or alternative MoneyGram services. I tried a different location and received the same problem. I am not interested in MoneyGram's other services. Anyone have a solution? I'm really curious as to why this problem started. The customer support from Lobstr, Stellar, and MoneyGram has been underwhelming.

Fuglypump

Same, I am not holding my breath... but I am still excited for it lol Noble for instance is only used for minting/burning native assets which can then be transfered to IBC enabled chains, I don't think it does anything else besides that. Maybe it could become a large yield if centralized exchanges enabled USDC deposits/withdrawals through Noble and also it could be adopted as a payment method for retail merchants.

Fuglypump

OSMO- First off LUNA crashed and UST was the only stablecoin in the Cosmos ecosystem at the time, LP was locked for 14 days and it was drained as there wasn't any features in place to mitigate the losses from such an event. But that is not the only issue, the token is inflating heavily because the community pool is far too massive and keeps being used for incentives in such a way that it has become more like a farm token than a DEX token. If you are a founder of some project you can convince Osmosis to use some OSMO from their community pool to match the external incentives that you gave to a liquidity pair using the community pool of your own project. Then you can take your founder's bag and farm both token incentives to dump them for ATOM or USDC. The DEX itself is fantastic but I regret speculating on its token, I should have put all of that money into ATOM instead.

Fuglypump

True but this is temporary and should change over the next year or so, once ATOM staking starts to receive a significant amount of yield in the form of USDC, NTRN and STRD there will be more reason for a governance proposal to reduce emissions caused by inflation, which the community has already been discussing. I'm guessing it will be done gradually over time as the traffic on Noble, Neutron and Stride grows large enough to generate significant revenue. It is very likely that ATOM's inflation will reduce over time to offset the increasing staking yield. It's hard to speculate on how much yield will be generated but NTRN has no inflation and burns literally all NTRN fees except what goes to ATOM stakers while 15% of STRD's inflation goes directly to ATOM stakers.

MinimalGravitas

Yea, if this goes ahead it will happen on a rollup rather than L1. Transaction fees post EIP-4844 should be under a cent on L2s, meaning in all probability many of these will end up being free for users (in the same way that we're all assuming USDC transfers will be free on BASE). In this scenario Visa could cover the gas cost for transactions that pass through their implementation of account abstraction, meaning customer experience would be pretty much frictionless.

derika22

ATOM is by far the more superior choice, the crypto has IBC...interblockchain communications and almost all Tendermint SDK cryptos can send funds between each other! This is also the reason why some chains decide to swap to Tendermint SDK, also USDC has one of its chain here! Interoperability is the future

iwakan

Truly amazing and bizarre how USDT is still going strong and even hit an ATH market cap yesterday. It is probably the project that has been criticized consistently for the longest time, and probably for good reason. They are a black box, no one knows whether they are liquid or not, and they refuse to show their books. Their reputation is entirely based on trust, in an industry where trustlessness is supposed to be the whole point. I thought for sure the recent double-whammy of FTX collapsing, and regional crypto-friendly banks collapsing, would at the very least have an effect. Its rival USDC depegged for the first time. And yet, USDT just grew even larger, absorbing people fleeing from USDC, even though it's virtually guaranteed that USDT was hit by the same fundamental factors as USDC was: Rising interest rates causing bonds to lose value, and bonds are almost certainly one of the ways Tether is storing their assets.

dcdplex

Gow do I get maximum gains from my USDT and USDC?

suninabox

I might be misremembering but I'm fairly sure USDC is banked and registered in the US which subjects it to regulation and oversite that doesn't exist in Tether's Bahamas shadow bank or wherever they're banking now.

bdizzle7177

Also if the funds are in USDT or USDC there is a possibility that it can be blacklisted by circle or tether essentially freezing the scammed funds.

CatBoy191114

Sure. And Harmony ONE is the future. UST will make USDT and USDC obsolete. Ledger is the safest place to store one's crypto. .... the list goes on. When the r/cc hive mind tells you something will be great/fine, run!

abcoathup

Not always the most exciting every single week but Ethereum is what people use: https://cryptofees.info I thought native USDC on Arbitrum was the most interesting thing this week. 100k contributions to KZG ceremony is pretty cool, roll on Dencun upgrade and EIP4844. Next week is Optimism Bedrock update.

funkinaround

USDC publishes attestations same as Tether. They're both "audited" the same way.

pokeholo23

TRX going up again, but I don't trust it one bit.. Telling you they turn TRX into USDC/USDT/BTC in a whitewashing move

LufyCZ

Coinbase - haven't used in a while, though last time I did (300d ago), I was charged 0.02USDC for a Matic withdrawal Crypto.com (CDC) - [definitely does](https://crypto.com/exchange/document/fees-limits) Gemini - [sounds like they do](https://www.gemini.com/fees/transfer-fee-schedule#section-crypto-transfer-fees) Kraken - [sounds like they do](https://support.kraken.com/hc/en-us/articles/360000767986-Cryptocurrency-withdrawal-fees-and-minimums) So nah free withdrawals aren't the norm at all

CointestMod

#Tether Pro-Arguments Below is a Tether pro-argument written by CreepToeCurrentSea. > [USDT](https://tether.to/en/transparency/) is a stablecoin (stable-value cryptocurrency) issued by Tether, a Hong Kong-based company. The token is pegged to the USD by keeping reserves of commercial paper, fiduciary deposits, cash, reserve repo notes, and treasury bills equal to the number of USDT in circulation. Initially named as Realcoin, a second-layer cryptocurrency token built on top of Bitcoin's blockchain using the Omni platform, it was later renamed USTether and, finally, USDT. In addition to Bitcoin, USDT was later updated to work on the Ethereum, EOS, Tron, Algorand, and OMG blockchains. > > # PROs > > **USDT is well established** > > It has built a long history of resilience, reliability and trust because it has been around for a [while](https://www.wsj.com/articles/BL-MBB-23780) (around 8 years in the cryptocurrency market). This had helped to convince clients that the stablecoin is [legitimate](https://www.certik.com/projects/tether?utm_source=CMC&utm_campaign=AuditByCertiKLink). > > As of this year, USDT currently is in the top ten cryptocurrencies by [market cap](https://www.coingecko.com/en/coins/tether) with a 24-hour trading volume of around 45 billion dollars and a total number of addresses of up to 4.5 million. In its last known [audit](https://www.fairyproof.com/doc/111.pdf) in 2021 it has been considered to have *"No vulnerabilities with critical, high, medium or low-severity."* > > **Wide acceptance** > > Tether has multiple gateways for customers (retail, exchanges, and companies) because it is built on several leading [blockchains](https://tether.to/en/supported-protocols), including Algorand, Avalanche, Bitcoin Cash's Simple Ledger Protocol (SLP), Ethereum, EOS, Liquid Network, Omni, Polygon, Tezos, Tron, Solana, and Statemine. These transport protocols are made up of open source software that interfaces with blockchains to allow for the issuance and redemption of Tether tokens. > > Furthermore, it has been available on major exchanges such as Bitfinex, Binance, Coinbase, Kraken and [more](https://www.coingecko.com/en/coins/tether#markets), Offering a plethora of pairs for users to choose from or that of which is available in their region although as of lately some exchanges have been switching to Circle's USDC over growing concerns of legal issues related with Tether. > > **Buffer against volatility** > > One of the primary functions of stablecoins is to act as a [hedge](https://www.researchgate.net/publication/341245986_Are_stablecoins_truly_diversifiers_hedges_or_safe_havens_against_traditional_cryptocurrencies_as_their_name_suggests) when crypto markets are in a downturn. Because the aforementioned market is extremely volatile, traders and investors want some sort of buffer against this without having to directly trade their crypto for fiat as to also avoid larger fees as well. Supported by its large market capitalization, USDT should be less volatile and thus safer. > > **Announcement of a full audit** > > Tether's CTO Paolo Ardoino recently stated in an [interview](https://www.euromoney.com/article/2a8dpi4tnxahuu98a251c/fintech/cryptocurrencies-tether-is-open-to-providing-more-information) with Euromoney that the company is preparing for a full audit with an accounting firm called MHA Cayman (which also handles Tether's [quarterly assurance opinions/reports](https://assets.ctfassets.net/vyse88cgwfbl/1np5dpcwuHrWJ4AgUgI3Vn/e0dac722de3cea07766e05c52773748b/Tether_Assurance_Consolidated_Reserves_Report_2022-03-31__3_.pdf)). According to the CTO in the interview, MHA Cayman is one of the "*top 12*" accounting firms, and most top accounting firms deny requests for full audits due to the associated reputational risks. In the future, hopefully, this will provide more security and transparency to its users against the number of allegations and investigations it is currently facing. > > **Despite everything, USDT is still here** > > From the past legal troubles it has faced, the ones it's facing right now, the vast amount of criticisms from different facets off the internet and the several crypto winters it endured. USDT is still alive and kicking. Will it still be the top stablecoin in the next 5 years? Unlikely, but I am for certain it was a major part for the growth and expansion of crypto's fetal years. Moving forward it's up to them, the people behind Tether, if they will finally redeem themselves against all the allegations, criticisms, troubles, and not just do another settlement. > > ^(Sources:) > > [^(https://tether.to/en/faqs/)](https://tether.to/en/faqs/) > > [^(https://tether.to/en/supported-protocols)](https://tether.to/en/supported-protocols) > > [^(https://tether.to/en/transparency/)](https://tether.to/en/transparency/) > > [^(https://tether.to/en/transparency/#reports)](https://tether.to/en/transparency/#reports) > > [^(https://en.wikipedia.org/wiki/Tether\_(cryptocurrency))](https://en.wikipedia.org/wiki/Tether_(cryptocurrency)) > > [^(https://assets.ctfassets.net/vyse88cgwfbl/5UWgHMvz071t2Cq5yTw5vi/c9798ea8db99311bf90ebe0810938b01/TetherWhitePaper.pdf)](https://assets.ctfassets.net/vyse88cgwfbl/5UWgHMvz071t2Cq5yTw5vi/c9798ea8db99311bf90ebe0810938b01/TetherWhitePaper.pdf) > > [^(https://www.wsj.com/articles/BL-MBB-23780)](https://www.wsj.com/articles/BL-MBB-23780) > > [^(https://www.certik.com/projects/tether?utm\_source=CMC&utm\_campaign=AuditByCertiKLink)](https://www.certik.com/projects/tether?utm_source=CMC&utm_campaign=AuditByCertiKLink) > > [^(https://www.coingecko.com/en/coins/tether)](https://www.coingecko.com/en/coins/tether) > > [^(https://www.fairyproof.com/doc/111.pdf)](https://www.fairyproof.com/doc/111.pdf) > > [^(https://www.coingecko.com/en/coins/tether#markets)](https://www.coingecko.com/en/coins/tether#markets) > > [^(https://www.researchgate.net/publication/341245986\_Are\_stablecoins\_truly\_diversifiers\_hedges\_or\_safe\_havens\_against\_traditional\_cryptocurrencies\_as\_their\_name\_suggests)](https://www.researchgate.net/publication/341245986_Are_stablecoins_truly_diversifiers_hedges_or_safe_havens_against_traditional_cryptocurrencies_as_their_name_suggests) > > [^(https://www.researchgate.net/publication/339263534\_What\_is\_Stablecoin\_A\_Survey\_on\_Price\_Stabilization\_Mechanisms\_for\_Decentralized\_Payment\_Systems)](https://www.researchgate.net/publication/339263534_What_is_Stablecoin_A_Survey_on_Price_Stabilization_Mechanisms_for_Decentralized_Payment_Systems) > > [^(https://www.researchgate.net/publication/332458820\_Is\_Cryptocurrency\_a\_Hedge\_or\_a\_Safe\_Haven\_for\_International\_Indices\_A\_Comprehensive\_and\_Dynamic\_Perspective)](https://www.researchgate.net/publication/332458820_Is_Cryptocurrency_a_Hedge_or_a_Safe_Haven_for_International_Indices_A_Comprehensive_and_Dynamic_Perspective) > > [^(https://www.euromoney.com/article/2a8dpi4tnxahuu98a251c/fintech/cryptocurrencies-tether-is-open-to-providing-more-information)](https://www.euromoney.com/article/2a8dpi4tnxahuu98a251c/fintech/cryptocurrencies-tether-is-open-to-providing-more-information) > > [^(https://assets.ctfassets.net/vyse88cgwfbl/1np5dpcwuHrWJ4AgUgI3Vn/e0dac722de3cea07766e05c52773748b/Tether\_Assurance\_Consolidated\_Reserves\_Report\_2022-03-31\_\_3\_.pdf)](https://assets.ctfassets.net/vyse88cgwfbl/1np5dpcwuHrWJ4AgUgI3Vn/e0dac722de3cea07766e05c52773748b/Tether_Assurance_Consolidated_Reserves_Report_2022-03-31__3_.pdf) ***** Would you like to learn more? Check out the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Tether) to find submissions for other topics.

One-Squirrel829

I understand it a great deal dont worry which is why your comment confuses me did you actually expect your USDC would be copied and you would get a free $100 because youd be the only one that thought that the value only comes from bridged in assets of which there has been $150m in three weeks

krollAY

Also interesting is that contracts will be settled in USDC not USD. That’s the first futures vehicle to be settled in a stablecoin that I am aware of. I do wish they offered contracts in smaller sizes though. 1 Bitcoin or 10 ETH prices a lot of people out immediately but I guess non institutional investors don’t typically utilize the futures market.

Every_Hunt_160

>crypto is just too complicated for the average person. And the worst part of this for the average person is that even the 'established' institutions may fall anytime. Look at the amount of 'active' crypto investors that invested into LUNA. It was a top 10 and almost top 5 crypto at one point, many people thought it was the most promising coin on their portfolio and billions in liquidity was poured into it. You can't tell me that all the 'experts' avoided investing into LUNA. And next, look at FTX. Easy to talk in hindsight, but taking us back to 1 year ago - it was the second largest exchange, SBF was the richest man right after CZ and mainstream media was full of praise for him. I followed crypto daily, and left my funds in FTX - thankfully, I pulled out just a day before FTX fully collapsed - and that was from someone who followed crypto news on a daily basis. Imagine how many 'average investors' don't have time to follow crypto so closely, and would have lost all their funds because FTX was the second largest and one of the 'safest' CEXes out there? If we hit 'another winter', you never know what's the next black swan coming around - USDT, USDC, BNB? Coinbase? Are these going to be around forever, and if the average person can't trust these what can the average person trust? Heck, even freaking Ledger has FUD nowadays.

defeatedsincebirth

Smart contract alternatives should be paid more attention to. It's what makes L2s so appealing. Polygon has worked hard to get people to use its chain, and it has been very successful. Usually, I jump from one chain to another. Right now, the Arbitrum chain is very popular. The TVL on Arbitrum has grown a lot in 2023. In March, it reached a high point of over $10 billion. Because of this, new projects on hot chains like GMX (I have a big bag), VELA, and I hope XCAL will give me good results after the CREDIT protocol because the vault strategy (ARB/USDC) might soon pick up.

Mrwheeler23

Circle bringing the beat to Arbitrum with the official version of USDC. Get ready to groove with seamless transactions and a sprinkle of decentralization magic

ChainsofCastamere

Is that chart the market caps? Surely you're not saying the price of USDC and USDT follow the price of bitcoin.

CointestMod

#Tether Con-Arguments Below is a Tether con-argument written by Far-Scholar9028. > **Tether Cons** > > **Dodgy Reserves** > > Initially, Tether asserted that each USDT was backed by a dollar in its reserves. But the truth is more nuanced, Tether is supported by a variety of: > > * Other Investments (Including Digital Tokens): 8.36% > > * Secured Loans(None To Affiliated Entities): 6.77% > > * Corporate Bonds, Funds & Precious Metals: 5.25% > > * Cash & Cash Equivalents & Other Short-Term Deposits & Commercial Paper: 79.62% > > Of the 79% cash and cash equivalents, only 10.25% is held in cash. Also to be emphasized is the lack of an independent audit of the specific breakdown of Tether's reserves. > > **Regulatory Issues** > > The Paradise Papers dump in 2017 revealed that Bitfinex and Tether are both controlled by the same individuals. The Bitfinex trading platform's owners, who also manage the tether virtual currency, have participated in a cover-up to conceal the apparent loss of $850 million dollars, according to the investigation conducted by the New York state Attorney General. Later, Tether's attorney acknowledged that only 74% of the Tether is backed. Tether is forbidden from conducting business in New York under the terms of the settlement agreement. Despite paying a $18 million punishment, Bitfinex and Tether did not confess any wrongdoing. > > **Competitors** > > * USDC: Circle and Coinbase launched USDC in 2018, and it is tied 1:1 to the US dollar. Issuers are also required to back all tokens with fiat reserves and provide monthly proof of reserves in order to guarantee that USDC maintains a continual one-to-one backing. > > * BUSD: BUSD is a stablecoin backed by USD that is 1:1 secure, compliant, and supported by Binance. It was created by Paxos and has NYDFS approval. To preserve the stability and security of the stablecoin, Paxos hires an auditing company to examine its BUSD and US Dollar supply each month. ***** Would you like to learn more? Check out the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Tether) to find submissions for other topics.

CointestMod

#Tether Pro-Arguments Below is a Tether pro-argument written by Blendzi0r. > *First published on: \[*[30.09.2021](https://np.reddit.com/r/CryptoCurrency/comments/og1s24/rcryptocurrency_cointest_top_10_category_tether/hewpzqt/)*\]* > > *Last edited on: 19.09.2022* > > # Intro > > Tether (USDT) is a digital dollar – a stablecoin pegged to US dollar. Stablecoins are a type of cryptocurrency with a value fixed to other assets (usually assets outside of the cryptocurrency space, e.g. fiat currencies, precious metals, etc.). Their main purposes are: 1) help investors escape the volatility of the cryptocurrency market and 2) allow investors to buy cryptocurrencies on exchanges that do not offer fiat deposits. USDT is currently the largest stablecoin. \[1\], \[2\], \[3\] > > # Pros > > **It’s the most popular and oldest stablecoin** > > Tether was launched in 2014 as Realcoin and renamed to Tether the same year \[1\]. It’s the first successful stablecoin. For many years, it had completely dominated the stablecoins market and despite the recent growth of other stablecoins, mainly USDC, Tether is still the biggest and most popular stablecoin. As of September 2022, its market cap shrinked against USDC's market cap in recent months, but its volume still tends to be much higher (according to coinmarketcap, on 19.09.2022 it was 12x(!) higher). In fact, USDT’s trading volume is unmatched by any other cryptocurrency. \[1\] > > It is also worth pointing out that more than 80% of stablecoins launched in 2015 are now gone and USDT is still here, despite its bad press. \[4\] > > **It has most trading pairs** > > The market cap and volume speak for themselves – Tether is the most popular stablecoin. There are very few exchanges that don’t accept USDT and all major coins have trading pairs with USDT. Even Coinbase, which is responsible for Tether’s rival stablecoin – USDC, lists Tether on its exchange (since May 2021). \[5\] > > It is also backed by several international currencies and, therefore, allows people in different countries purchase coins that they otherwise wouldn’t be able to get. > > **It was declared dead many times but, just like Bitcoin, it's alive and kicking** > > There are many controversies around Tether. Perhaps the most concerning one is whether USDT has its reserves fully backed. Many critics believe that Tether isn’t fully backed and if many investors were to redeem tethers at the same time, there would be no liquidity \[6\]. Situations when people redeem tokens en masse usually should happen during market crashes. In the last 4 years we had three significant market crashes – in 2018, in March 2020 and in May 2021. USDT survived all of them. > > It has also survived losing almost 25% of its market cap in a short time - from May to July of this year. > > **The latest breakdowns of the reserves is a step in the right direction** > > Tether had been criticized for lack of transparency (and rightly so) for many years. In May 2021, for the first time since 2014, Tether finally gave us an insight into their reserves. The first report was rather disappointing as it turned out that barely 3% of the reserves are made-up by cash. Moreover, 65% of the reserves were made-up by commercial paper and there were no details about the type of the commercial paper. \[7\] > > However, the reports from August and December 2021 looked much better \[8\]: cash and cash equivalents made up more than 80% of the reserves, more than 10% of which were cash and bank deposits, +/- 30% were treasure bills (they are considered very safe assets) and they provided more details – the reports included information about the rating and breakdown of maturity of the commercial paper and certificates of deposit. The reports were on pair with those of USDC. > > **USDT is centralized. But is it so bad in the case of a stablecoin?** > > Decentralization is essential for cryptocurrency. But so is replacing fiat. So is decentralization that important in the case of a stablecoin? > > The fact that USDT is centralized also allowed it to do good things on many occasions. It returned USDT sent to wrong addresses and cooperated with law enforcement officials and blocked/froze addresses that used USDT for illegal activities. \[9\], \[10\] > > ^(Sources:) > > ^(\[01\]) [^(https://en.wikipedia.org/wiki/Tether/(cryptocurrency)](https://en.wikipedia.org/wiki/Tether/(cryptocurrency)) > > ^(\[02\]) [^(https://tether.to/wp-content/uploads/2016/06/TetherWhitePaper.pdf)](https://tether.to/wp-content/uploads/2016/06/TetherWhitePaper.pdf) > > ^(\[03\]) [^(https://en.wikipedia.org/wiki/Stablecoin)](https://en.wikipedia.org/wiki/Stablecoin) > > ^(\[04\])[^(https://papers.ssrn.com/sol3/papers.cfm?abstract\\\\id=3835219)](https://papers.ssrn.com/sol3/papers.cfm?abstract\id=3835219) > > ^(\[05\]) [^(https://blog.coinbase.com/tether-usdt-is-now-available-on-coinbase-214f075deaa2)](https://blog.coinbase.com/tether-usdt-is-now-available-on-coinbase-214f075deaa2) > > ^(\[06\]) [^(https://www.theverge.com/22620464/tether-backing-cryptocurrency-stablecoin)](https://www.theverge.com/22620464/tether-backing-cryptocurrency-stablecoin) > > ^(\[07\]) [^(https://tether.to/wp-content/uploads/2021/05/tether-march-31-2021-reserves-breakdown.pdf)](https://tether.to/wp-content/uploads/2021/05/tether-march-31-2021-reserves-breakdown.pdf) > > ^(\[08\]) [^(https://tether.to/en/transparency/#reports)](https://tether.to/en/transparency/#reports) > > ^(\[09\]) [^(https://decrypt.co/41920/tether-uses-centralized-power-refund-million-usdt)](https://decrypt.co/41920/tether-uses-centralized-power-refund-million-usdt) > > ^(\[10\]) [^(https://cryptopotato.com/tether-freezes-1-7m-in-usdt-stolen-in-yearn-finance-exploit/)](https://cryptopotato.com/tether-freezes-1-7m-in-usdt-stolen-in-yearn-finance-exploit/) ***** Would you like to learn more? Check out the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Tether) to find submissions for other topics.

CointestMod

#DeFi Pro-Arguments Below is a DeFi pro-argument written by noxtrifle. > DeFi, or decentralized finance, is a method of transacting without the need for an intermediary, and in many ways replaces the traditional banking systems. Instead, a smart contract at the core of the app manages the whole system. Since it is the code, instead of a central authority, which manages the system, decentralisation is ensured. Thus, there are several benefits of DeFi protocols: > > * **Not subject to the limitations of traditional banking** > * [The only barriers to entrance of DeFi](https://cointelegraph.com/defi-101/defi-a-comprehensive-guide-to-decentralized-finance) are an internet connection and a crypto wallet. With just those two, one can access staking, lending, borrowing, and trading; among many more. > * Furthermore, since DeFi is governed by a smart contract and (generally) has no downtime, users are able to access their DeFi balances around the clock, without waiting for the tedious processes of, for example, waiting for a bank to open, applying for a loan, having a discussion with a loan officer, and being accepted. With DeFi, all this can be done in mere seconds. > * **Much more attractive rates for investors** > * Currently, the yield for staking or lending cryptocurrencies on DeFi is [generally above 3-4%](https://www.ecb.europa.eu\/pub/financial-stability/macroprudential-bulletin/focus/2022/html/ecb.mpbu202207_focus1.en.html), which is higher than the interest rates of most developed countries — making DeFi protocols attractive for investors who want all the benefits of cryptocurrencies along with the security offered by traditional banks. > * Stablecoins such as USDC and USDT have even higher yields (5-6% on average) and offer the same stability as the US Dollar, making DeFi rewards more attractive than most large banks. > * This results in the immediate rewarding of the most generous protocol: as more people become aware of the high yields offered, the protocol grows in size and is able to offer more services. However, such expansion will certainly cause yields to decrease. > * **Numerous use cases** > * **These include:** > * **Traditional transacting:** peer-to-peer transfers of capital are already facilitated by cryptocurrencies, and some projects [like Flexa](https://flexa.network/currencies/) allow for off-chain, in-house transfers at little to no cost. > * **Decentralized exchanges:** Decentralised exchanges, such as dYdX and Pancakeswap, provide the exact functionality of centralised exchanges, except that KYC is not required and a smart contract governs all functionality. > * **Stablecoins:** DeFi protocols give stablecoins new meaning by allowing them to be staked or lent for interest, which has very likely benefitted stablecoin adoption immensely. > * **NFTs, Yield Harvesting, Liquidity Providing, and many more.** ***** Would you like to learn more? Check out the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_defi) to find submissions for other topics.

coinfeeds-bot

tldr; Circle is launching a new native version of its USD Coin (USDC) stablecoin on the Arbitrum network, replacing the existing Ethereum-based token that's been bridged to Arbitrum. The goal is to speed up transactions through the use of cross-chain transfer protocols (CCTPs), allowing USDC to move natively to-and-from Ethereum and other supported chains in minutes. The changes come as the overall market for stablecoins has trended negatively for most companies in the space over the past 12 months, with USDC's market capitalization shrinking from $55 billion to $29 billion. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*

FattestLion

So all this while USDC has been on a soft launch?

Feeling-Inside5147

Half USDC, half Treasury bonds. And they call it “decentralized”.

PseudonymousPlatypus

Wow your use case is a little confusing. A lot of unnecessary conversions and swapping. Why? Buy Monero. Spend Monero. Earn Monero. Give Monero. It's cheap to transact, fast (0-conf is very safe for not massive amounts), private, fungible, decentralized. Everything a crypto is supposed to be on the base layer. If you're getting crypto because you want to use crypto, why would you be swapping between BTC and XMR and USDC and back to fiat? If you want fiat why not just leave it in fiat to begin with?

Bandit_Quick

Look into their debit card. You hold USDC and earn like 4%. Then get cryptoreeards as you spend. I'm near $3k in reward crypto for 2+ yrs..

icydee

As I said in my original post, how do you explain large quantities of USDC (for example) appearing on a CEX?

Acidhoe

Yeah, I meant it removes the bridge risk of USDC if it's native. I do hope we get a safer way to bridge at some point where there's not millions sitting waiting to be exploited.

coinfeeds-bot

tldr; Tether's USDT stablecoin has reached an all-time high in market capitalization, surpassing its previous peak level of $83.355 billion in May 2022. Tether is currently the third-largest cryptocurrency by market capitalization with a valuation of $83.6 billion, commanding 7.5% of the total cryptocurrency market capitalization. USDT dominates the stablecoin market with a 64% share out of a total stablecoin market capitalization of $130.2 billion. The supply of the second largest stablecoin USDC is nearly three times smaller than USDT. The spike in USDT's supply came from minting on Tron, which has been popular in emerging markets and developing countries due to cheaper and faster transactions. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*

coinfeeds-bot

tldr; Circle has launched a new version of its USDC stablecoin on the Arbitrum network, which is expected to provide a range of benefits for users and ecosystem partners. The native version of USDC is fully reserved and always redeemable 1:1 for US dollars, making it a more reliable option for institutional on/off-ramps via Circle and other partners. The upcoming Cross Chain Transfer Protocol (CCTP) support will eliminate bridge withdrawal delays, and the upgradeable smart contract will allow for future enhancements by Circle. The partnership between Circle and Arbitrum is expected to drive significant growth and adoption for USDC and to drive innovation and growth in the stablecoin market. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*

IvanRainbolt

Is there a transaction fee free Blockchain? I understand Stellar and Nano to a degree are somewhat cheap as far as transaction fees. The goal is to be able to create one's own token based on say fiat, specifically USD, and have those transactions be able to happen with no fees. USDC is on Stellar, but a transaction still requires 0.00001 XLM. Currently that is cheap, but will it stay that way?

coinfeeds-bot

tldr; Crypto payments company Circle will launch their US Dollar backed stablecoin (USDC) natively on the Arbitrum network, one of the most popular scaling solutions for Ethereum, on June 8th. This will eliminate the need for users to bridge USDC from Ethereum to Arbitrum, and will offer benefits such as institutional on- and off-ramps via Circle and their partners, and the ability to work on the Cross-Chain Transfer Protocol (CCTP). USDC has lost substantial market share over the past year, but the move to Arbitrum may help to increase its usage. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*

Odlavso

People who used BUSD are switching over to USDT and USDC which explains the rise of both

Beyonderr

A moment of silence for the thousands of people here who said a year ago that the real flippening is USDC overtaking USDT lol. True inverse r/CryptoCurrency [https://www.reddit.com/r/CryptoCurrency/comments/sunfok/many\_people\_are\_hyped\_about\_the\_ethbtc\_flippening/](https://www.reddit.com/r/CryptoCurrency/comments/sunfok/many_people_are_hyped_about_the_ethbtc_flippening/) [https://www.reddit.com/r/CryptoCurrency/comments/rbq2qv/the\_most\_important\_flippening\_is\_nigh\_usdc\_to/](https://www.reddit.com/r/CryptoCurrency/comments/rbq2qv/the_most_important_flippening_is_nigh_usdc_to/)

Illicitterror

Good to see USDC integration more liquidity can flow in now

open-now

I trust USDC more than USDT and Busd

Status_Floor1746

Not sure why anyone would argue against this move. Yeah USDC got knocked when the banks started collapsing but they have since adjusted so adding this makes a ton of sense for Arbitrum to do.

Painfulblisteronmyb

I also welcome USDC. You can totally send me some hardware@wallet (that actually works on certain wallets, like trustwallet app)

coinfeeds-bot

tldr; Circle is launching native USD Coin (USDC) on the Arbitrum network on June 8, 2023, replacing the current bridged version that operates on the Ethereum blockchain. The introduction of native USDC on Arbitrum brings a host of benefits to users, including enhanced transparency and trust for investors, and seamless access to USDC for various financial entities. The migration of liquidity from the bridged USDC to the native version will be a gradual process, and the existing Arbitrum Bridge will continue to function normally for bridging USDC to and from Ethereum. Circle has ambitious plans to introduce the Cross-Chain Transfer Protocol (CCTP) to Arbitrum following the launch of native USDC. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*

One-Squirrel829

I dont care about their sources, i know what is true and what isnt and am very sus after reading it - a real hitpeice it looks like to me with all the falsehoods Hex is a Layer 2 coin an ERC20 like USDC - NOT A CHAIN lol embarassing for CMC

CointestMod

#Tether Con-Arguments Below is a Tether con-argument written by Far-Scholar9028. > **Tether Cons** > > **Dodgy Reserves** > > Initially, Tether asserted that each USDT was backed by a dollar in its reserves. But the truth is more nuanced, Tether is supported by a variety of: > > * Other Investments (Including Digital Tokens): 8.36% > > * Secured Loans(None To Affiliated Entities): 6.77% > > * Corporate Bonds, Funds & Precious Metals: 5.25% > > * Cash & Cash Equivalents & Other Short-Term Deposits & Commercial Paper: 79.62% > > Of the 79% cash and cash equivalents, only 10.25% is held in cash. Also to be emphasized is the lack of an independent audit of the specific breakdown of Tether's reserves. > > **Regulatory Issues** > > The Paradise Papers dump in 2017 revealed that Bitfinex and Tether are both controlled by the same individuals. The Bitfinex trading platform's owners, who also manage the tether virtual currency, have participated in a cover-up to conceal the apparent loss of $850 million dollars, according to the investigation conducted by the New York state Attorney General. Later, Tether's attorney acknowledged that only 74% of the Tether is backed. Tether is forbidden from conducting business in New York under the terms of the settlement agreement. Despite paying a $18 million punishment, Bitfinex and Tether did not confess any wrongdoing. > > **Competitors** > > * USDC: Circle and Coinbase launched USDC in 2018, and it is tied 1:1 to the US dollar. Issuers are also required to back all tokens with fiat reserves and provide monthly proof of reserves in order to guarantee that USDC maintains a continual one-to-one backing. > > * BUSD: BUSD is a stablecoin backed by USD that is 1:1 secure, compliant, and supported by Binance. It was created by Paxos and has NYDFS approval. To preserve the stability and security of the stablecoin, Paxos hires an auditing company to examine its BUSD and US Dollar supply each month. ***** Would you like to learn more? Check out the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Tether) to find submissions for other topics.

CointestMod

#Tether Pro-Arguments Below is a Tether pro-argument written by Nostalg33k. > # Tether, criticized but stable. > > ​ > > Tether is always the bane of all jokes. USDT despite some problems of transparency is still the best stablecoin. Let's dive in. > > ​ > > # What is a USDT or Tether: A Stablecoin > > While we argue about USDT maybe you need a reminder: USDT is a cryptocurrency (it is on blockchains and works through these digital un-modifiable ledgers) and its value is correlated to a currency which is the dollar. Therefore the name Stablecoin. While this cointest is about Tether, you need to understand the advantages of stablecoins. > > While we are waiting for a cointest about stablecoins as a whole, here is the jist of it. > > 1) Stablecoins allow you to trade without returning to your fiat. > > Stablecoins are a way to circumvent profit declarations. Trading crypto is already complicated as it is, trading crypto is very fast paced and trading crypto relies on stablecoins. The reliance on stablecoin is due to taxable events: Selling a part of your folio for fiat leads to a taxable event. If you are not planning to put money out or to try to get your losses written as a loss (which may backfire later but you do you) then you should rely on stablecoins. Trading in a USDT pair does not (yet) create a taxable event. So go yolo out there ! > > 2) Fast paced liquidity which is digitally managed by a blockchain. > > Stablecoins have the advantages of being highly liquid and being secured by blockchain. > > 3) Swapping for a stable dollar value on your Ledger. > > If you are a fan of DEX, these platform do not have a fiat ramp, so if you want to go back to a dollar valued coin which is not suffering from unstable market conditions => stablecoins. > > # The main argument is liquidity. > > While trust in Tether is lacking, anyone knows that you can transit by Tether without risking a depeg. Users have seen UST and other stable coins crumble while Tether stays standing. With a daily volume close to its circulating supply, you can trust USDT if you have to buy it or sell it. Some will be sold and bought as you need it. > > [The data of this stablecoin is showing that you can trust it](https://coinmarketcap.com/currencies/tether/) > > # The backbone of the industry. > > If you want to support the Crypto industry as a whole, USDT is the stablecoin to hold. By holding USDC you are propping up Coinbase and Bitcoin, by holding BUSD you are propping up Binance. USDT is universal right now. It is the common stablecoin which is on all platforms. Yes it has links with bitfinex but it is more generalized than other stablecoins. > > ​ > > # Nice Staking rates for small bag holders. > > A lot of platforms such as [Binance](https://www.binance.com/en/earn/usdt) offer good rates for staking USDT. Which means that you can be paid for supporting the crypto industry as a whole. This staking is safer than other cryptos since your main investment stays pegged to the dollar which has been shown to be the ultimate commodity in our inflationary cycle. > > ​ > > # Tether like any crypto can be sent from a user to another. > > USDT can be your way to send money to your friend. USDT is free to move (you still have to pay the blockchain fees). This part can be a way to on-ramp your friend into the crypto ecosystem. You can send them some money on their newly created wallet and show them the way stablecoins work. > > ​ > > # Conclusion: Advantages of a stablecoin and of market domination makes Tether the best one. > > Often people are speaking about USDT saying it should crumble under its own weight. They don't realize that the volume of USDT is so high that a large part of the market cap is actually exchanging hands. If tomorrow 20 billions or more are slashed directly from people's pockets this would create the biggest bloodbath in crypto history. Tether has become to huge to fail and its liquidity makes it the best one for users. > > It has all the advantages of a stablecoin and you should be able to trust it. It has existed for nearly 10 years and will surely exist for 10 years more ! ***** Would you like to learn more? Check out the [Cointest archive](/r/CointestOfficial/wiki/cointest_archive#wiki_Tether) to find submissions for other topics.

AwkwardHamburge

USDC is like the super awesome cool work colleague who everyone respects and praises. Then he does something really stupid. And now most dont trust them and don't wanna be associated with them.

garybaws

I still trust USDC more than usdt, at least usdc survived a bank run

SeatedDruid

Oooo so USDC on ETH layer 2?

Padankadank

USDC is enough of a CBDC, they don't need a full CBDC